Deep Dive into Oak Park, a Detroit Ring City

Source: Google Maps

With a vibrant rental market and attractively priced housing stock, Metro Detroit stands out as a prime area for buy-and-hold investment opportunities.

However, navigating this sprawling region can be daunting. Its 185 cities and 290 neighborhoods present a complex tapestry of investment types and financial prospects that can perplex even seasoned real estate investors.

Recognizing the need for clear, straightforward guidance, we've leveraged our 20+ years of experience as Detroit natives and property managers to craft this “Deep Dive” series. Our mission is to provide investors with a detailed understanding of each area's strengths and weaknesses, helping you make informed decisions for maximizing your returns in Metro Detroit.

To that end, we’ve come up with our scoring system for each city and neighborhood. Our evaluation criteria focus on the key factors affecting rental investment potential, such:

• Housing stock
• Market dynamics
• Tenant stock
• Area livability

…and more.

We also consider pricing, average returns, and future developments likely to impact property values, rents, or demand. Finally, we’ll be covering the typical issues you might encounter in each area to help you prepare for the realities of landlording here.

all ending in an overall rental investment “score” for each area. helping you make informed decisions and

So sit back, relax, and welcome to your tour of the Motor City.

Overview of Oak Park, Michigan

In this installment, we turn our attention to Oak Park. This Ring City—our term for cities directly bordering Detroit—offers a mix of affordability, convenience, and growth potential that makes it an attractive option for both new and seasoned investors.

All in all, this is a great place to invest, although with the upward trend in prices recently, it won’t be affordable for entry-level landlords for long.

Why is it so appealing to tenants, local businesses, and - by extension - investors?

Close to highly desirable areas like Ferndale, Oak Park attracts lots of people who are looking for affordable alternatives that still provide a great quality of life. Plus, it’s within 10 minutes of 4 different freeways, offering easy access to the City of Detroit and the surrounding suburbs.

So it’s no wonder why both properties for rent and sale go fast here - on average, properties sold in just 9 days, and rents have increased significantly in the past year to reflect rising interest.

Now, let’s take a deeper look at the property market in Oak Park.

Housing Market Analysis

The average rent in Oak Park is $1,800 a month, and the average sale price of a single-family home is $225,184, according to Zillow’s latest data.

That leaves you with an average rent-to-price (RTP) ratio of .79% - a little shy of the 1% rule. But, as you’ll see below, there are still plenty of properties you can find here that do fit the 1% rule.

Sale Tends

Over the past few years, house values in Oak Park have skyrocketed.

Since 2023, home prices are up 6%, but just take a look at how fast they’ve been appreciating over the past decade:

Source: Zillow

That means prices have nearly tripled since 2014, at a rate of 19.1% YOY on average, and they’re only going to continue to do so as the City of Detroit develops further.

Driving this increase is huge demand: properties here go pending in just 7 days typically, and often sell above asking.

So if you want to invest here, it’s better to get in sooner than later and aim for a property that needs some work to bring it up to rental standard. There are still deals to be had in Oak Park (if you know where to look).

Want more info on specific investment opportunities in Oak Park, Michigan? for a free consultation.

Rent Trends

As home prices have increased, so too have rents.

In fact, they’re up $350 from this time last year, making for a 25% YOY increase. That brings the average rent up to $1,800 a month in Oak Park, as of July 2024:

Source: Zillow Rentals Data

Rents in Detroit have been steadily increasing on the whole (1.7% YOY), but Oak Park is outpacing most areas within the Metro by a long shot.

So now is the ideal time to secure a rental property here and take advantage of these gains.

Investment Opportunities in Oak Park

Let’s take a look at an actual property on the market in Oak Park (*as of the time of writing).

Oak Park's housing stock primarily consists of single-family homes (72.8%), with some apartment complexes (16.9%) and townhomes (6.2%). For this Deep Dive, we’re going to focus on single-family homes, since those are most popular with renters.

Properties near the eastern side, close to desirable Ferndale, tend to be more expensive, while those near Eight Mile and closer to Detroit are generally cheaper, as you can see from the properties currently for sale on Zillow:

The same goes for rentals: The further south you go, the cheaper rents tend to be, whereas the closer you get to Ferndale, rentals are more sought-after and hard 

Here are some properties on the market in Oak Park right now (as of July 2024):

Let’s zero in on one of them to get a feel for what it would look like to invest here.

Example Investment Property

This is a listing for sale in Oak Park in July 2024.

As you can see, the asking price is a little shy of $180k, but the Zestimate value is $166,000, which is what we would suggest you aim to get it for. We think $180k represents closer to the ARV since the property requires some decent renovations before it would be rent-ready.

The estimated rent for this unit (after repairs) would be $1,800, making it fit the 1% rule perfectly.

However, it’s also one of the most affordable properties in this particular block at the moment - almost everything else nearby is selling in the low 200s. And with the crazy appreciation trends Oak Park has seen over the last decade, you could stand to make some serious equity gains here, too.

Hopefully, this gives you an idea of what’s possible when investing here, but feel free to reach out to us if you want more detailed data.

For now, let’s move on from the numbers to the more qualitative analysis, before we tally up the final score for Oak Park as a rental investment neighborhood.

Area and Tenant Quality

The increasing demand from homeowners and tenants for properties in Oak Park reflects the fact that it’s one of the more desirable middle-class areas in Metropolitan Detroit.

Not only is it a “nice” neighborhood, with well-kept residences and lots of amenities, it’s also well-connected and close to the nightlife and shopping of Ferndale.

With that being said, here’s why quality tenants are flocking to Oak Park:

Housing Stock

Homeownership rates are fairly high here, at 59%. This means that the majority of houses are well-kept, and the streets of Oak Park are warm and inviting to walk through.

When it comes to the quality of the homes themselves, age is always a fairly good indicator of what to expect, so here’s a breakdown of properties in the city by year built:

Source: BestPlaces

As you can see, almost half of all homes were built in the 1950s, which means you may encounter age-related issues when renovating a unit like our example property above (which was built in 1951).

These might include outdated plumbing or electrics, which can get expensive to replace, so make sure you do a full inspection and get quotes for repairs before putting in an offer.

That being said, since the majority of Oak Park residences are owner-occupied, most have been pretty well maintained, which means exterior renovations like landscaping are often minimal.

Tenant Stock

Oak Park is home to approximately 29,319 residents, with a population density of 5,681 residents per square mile, which is fairly average for the Metro area. The city appeals to a diverse demographic, including families and young professionals, and is the 17th most diverse suburb in Michigan, according to the US Census.

This vibrant community enjoys easy access to trendy nearby Ferndale, as well as local amenities like grocery stores, restaurants, coffee shops, and parks, making it a desirable place to live for a variety of tenants.

The majority of tenants either live alone or don’t have children, although it is still a popular area with families. With an average rent of only $1,800 monthly and an average household income of $5,166, it’s not difficult to find tenants in Oak Park who can (and will) pay the rent on time consistently.

The unemployment rate stands at 4.7% - below the national average of 6%, and 1% lower than it was the previous year. On top of this, future job growth is forecasted at an impressive 33.7% over the next decade.

Education levels are also high, with 92.3% of residents having graduated from high school and a significant portion holding higher degrees.

Honestly, when it comes to Detroit, Oak Park probably has one of the strongest tenant pools you can find without venturing into the pricier Class A areas, like Ferndale and Birmingham.

Economic Development

Economic growth in Oak Park has been robust, thanks to ongoing efforts by the city's Economic Development Department. The past few years have seen significant commercial and industrial investments.

For example, some recent projects include:

• - The once-vacant 11 Mile Corridor was recently revamped with breweries, cafes, restaurants, and a bar, catering to the incoming young professionals here.
• - The Lighthouse MI project added 64 high-quality townhomes and apartments aimed at lower-income families, totaling $15M in investment.
• - The Oak Park City Government added new bike lanes, pocket parks, and a trailhead along the Nine Mile Road Corridor, and the second phase is set to include another new, larger public park.
• - MoGo, the City of Detroit’s first public bike-sharing service, recently announced it will expand operations into Oak Park.

All of this means that demand and prices will continue to rise as Oak Park becomes increasingly gentrified.

Crime and Safety

Overall, crime statistics in Oak Park are at or below national averages.

According to Niche, when residents were polled the majority said that Oak Park is “pretty safe,” which is reflected in the reviews it gets from people who live there.

One lifelong resident says: “My neighbors were always friendly and I felt safe growing up there. There were many shops and things to do in the area without being too touristy like some bigger cities.”

So, while safety may be a concern in some Detroit areas, you can rest assured that crime won’t be a major issue in Oak Park.

Investment Report Card

As you can see, Oak Park offers a compelling blend of affordability, considerable appreciation, and solid cash-flow potential. Plus, the city's economic growth and development projects continue to enhance its attractiveness for rental property investors.

This means that prices will keep rising, but so will the level of competition from other landlords. So while we still include this as a hot investment area for now, we’ll probably update this Deep Dive in a couple of years to report that it has since become prohibitively expensive for entry-level investors.

Our advice? Buy now, before that updated article gets published.

Stay tuned for our upcoming Deep Dives into other Metro Detroit neighborhoods. If you have a specific area in mind, leave a comment, and we'll be sure to cover it in one of our next installments.

Want to explore Oak Park’s investment properties? for a list of our available units.